U.S. stock futures flickered near the flatline Tuesday as the Dow Jones Industrial Average looked to build on its fourth positive day in a row, and investors turned to the latest batch of earnings. Dow futures were up 20 points, or less than 0.1%. S&P 500 futures hovered just above flat while Nasdaq 100 futures slipped 0.1%. Disney shares fell more than 4% after the media and entertainment giant exceeded quarterly earnings expectations and posted in-line revenue. Shares of defense-technology firm Palantir plunged roughly 11.5% on weaker-than-expected guidance. Investors on Monday carried over the bullish market sentiment from Friday, when the latest nonfarm payrolls data showed that job growth came in below expectations in April and unemployment ticked higher. The results alleviated concerns that the economy was too hot and raised optimism around rate cuts from the Federal Reserve. To be sure, other conflicting economic data — such as an uptick in the employment cost index — means that there are still questions surrounding the actual trajectory of inflation, according to Rob Haworth, senior investment strategist, wealth management with U.S. Bank. “I think the market is looking for a bit of a tiebreaker in terms of what’s happening with inflation,” said Haworth. He added that he has become “a little more constructive” on his outlook due to ongoing economic strength. “Inflation is remaining persistent but not not accelerating to a problematic level. So we think there’s room to own risk assets here,” Haworth added. U.S. Treasury yields declined on Tuesday as investors considered the outlook for Federal Reserve monetary policy following the latest economic data and remarks from central bank officials. The yield on the 10-year Treasury was down 2 basis points at 4.471%. The 2-year Treasury yield was last higher by less than one basis point at 4.828%. South Korean stocks led gains in Asia-Pacific markets on Tuesday after Wall Street rose overnight on expectations that the Federal Reserve could cut interest rates soon. South Korea’s Kospi closed 2.16% higher at 2,734.36 to scale a more than one month peak, powered by heavyweights Samsung Electronics and SK Hynix. The small-cap Kosdaq ended 0.66% higher at 871.26. Australia’s S&P/ASX 200 closed up 1.44% at 7,793.30 after the decision, gaining for a fourth straight day. Japan’s Nikkei 225 resumed trading after a holiday to end 1.57% higher at 38,835.1, while the broad-based Topix gained 0.65% to close at 2,746.22. Hong Kong’s Hang Seng index fell 0.51%, and was set to end a 10-day streak of gains. Mainland China’s CSI 300 ended flat at 3,659.0. Crude oil futures fell Tuesday as the course of the war in Gaza remains uncertain. Israel’s war cabinet unanimously voted to continue military operations in Rafah after rejecting a cease-fire proposal accepted by Hamas on Monday. Israeli forces seized the Rafah border crossing, sparking condemnation from Egypt, which has been mediating cease-fire talks. West Texas Intermediate June contract: $78.32, down 16 cents, or 0.2%. Year to date, U.S. crude oil has gained 9.3%. Brent July contract: $83.16 a barrel, down 18 cents, or 0.22%. Year to date, the global benchmark has gained about 8%. Gold prices slipped on Tuesday as the U.S. dollar firmed, while investors awaited more comments from the Federal Reserve officials for further clarity on the timeline for potential interest rate cuts. Spot gold was down 0.5% at $2,313.11 per ounce. U.S. gold futures fell 0.4% to $2,321.70 per ounce. The U.S. dollar index gained 0.2% against its rivals, making gold less attractive for other currency holders.
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